Municipal Public Wi-Fi A Sound Investment? - EORN
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Publication: Summer 2016 Prepared for EORN By: Maureen O’Higgins O’Higgins Consulting Inc. 27 Palisade Street Ottawa, Ontario K2G 5M6 Maureen.ohiggins@rogers.com 613 224-0625 Disclaimer: This document is for informational purposes only. EORN/EOWC do not recommend, promote or endorse any of the specific tools, technologies, business models or particular vendors discussed in this Municipal Public Wi-Fi document. Technologies, vendors and business models for delivering public Wi-Fi are rapidly evolving and every municipality must consider its own unique needs and capacity for delivering public Wi-Fi. EOWC/EORN have made every possible effort to ensure the accuracy of the information in this document however they cannot be responsible for any errors or omissions. EORN/EOWC would welcome feedback on the content and scope of the information presented and will undertake to update the information contained in the document on a timely basis.
Table of Contents 1 Introduction............................................................................................................................. 2 2 Definitions............................................................................................................................... 2 3 Wi-Fi Trends............................................................................................................................. 3 3.1 Mobile Connectivity................................................................................................... 3 3.2 Carrier Class Wi-Fi...................................................................................................... 4 3.3 Proliferation of Wi-Fi Venues...................................................................................... 5 3.4 Municipal Wi-Fi Networks.......................................................................................... 6 3.5 Venue Exclusivity........................................................................................................ 7 3.6 New Spectrum Options.............................................................................................. 7 4 Public Wi-Fi Networks in Communities served by EORN..................................................... 7 4.1 Public Libraries........................................................................................................... 9 4.2 Municipal Offices....................................................................................................... 9 4.3 Recreation Facilities.................................................................................................... 9 4.4 Downtown Wi-Fi Zones............................................................................................ 10 4.5 Municipal Plans for New or Expanded Wi-Fi............................................................. 12 4.6 Public Wi-Fi Provided by Private Sector Companies................................................... 13 5 The Business Case for Free Public Wi-Fi............................................................................... 14 5.1 Leveraging the EORN Investment in Broadband........................................................ 14 5.2 The Benefits of Municipal Public Wi-Fi...................................................................... 15 5.3 Economic Development............................................................................................ 16 5.4 Community Branding and Marketing....................................................................... 17 5.5 Collaboration with other Municipal Programs and Services....................................... 18 5.6 Service to Low-income and Underserved Residents................................................... 19 5.7 Revenue Generating Opportunities........................................................................... 20 6 Estimating the Cost of Municipal Wi-Fi............................................................................... 22 6.1 A Single Wireless Hotspot........................................................................................ 25 6.2 Multiple Wi-Fi Hotspots............................................................................................ 27 6.3 Wi-Fi Zones.............................................................................................................. 28 6.4 Summary................................................................................................................. 29 7 Funding for Municipal Public Wi-Fi...................................................................................... 29 8Security and Liability Risks................................................................................................... 29 8.1 Security.................................................................................................................... 29 8.2 Liability.................................................................................................................... 32 8.2.1 Terms and Conditions of Use Policies........................................................................ 33 8.2.2 Copyright................................................................................................................. 34 8.2.3 Storage of User Data................................................................................................ 35 8.2.4 Content Filtering...................................................................................................... 35 9 Potential for Conflict with Private Sector Companies........................................................ 36 10 Conclusion............................................................................................................................. 36 Appendix A - Municipal Wi-Fi Network Examples..................................................................... 37 Fred e-Zone.............................................................................................................. 37 Stratford Ontario Stratford_Free............................................................................... 37 Olds Alberta O-NET.................................................................................................. 37 The Vermont Digital Economy Project....................................................................... 38 LinkNYC................................................................................................................... 39 Appendix B - Terms and Conditions of Use Policies.................................................................. 39 Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 1
1 Introduction Investment in public Wi-Fi can support economic development, enhance the branding of connected communities and support access to the internet for those who cannot connect at home. The EORN has made a $260 million investment in high speed broadband networks supporting broadband services across most of Eastern Ontario. This investment in high quality, reliable broadband service will support economic development throughout the Region. It will entice businesses to locate in the region and help retain businesses and talent. Eastern Ontario communities can leverage the backhaul capacity provided through that investment, to deploy free public Wi-Fi and increase access to connectivity. Municipal public Wi-Fi is playing a growing role in enabling people to stay connected. There is a strong global trend toward increased access to free public Wi-Fi provided by carriers and municipalities, enabling people to be connected everywhere. In Eastern Ontario, the trend is similar with significant and growing access to free pubic Wi-Fi in municipal facilities, town centres and private businesses. In Eastern Ontario communities, there is a full range of municipal Wi-Fi offerings, from no service at all, to public Wi-Fi in all municipal facilities and town centres. As in other parts of the world, public Wi-Fi is established first in public libraries and cafés, before expanding to other venues. Many communities have plans to expand pubic Wi-Fi service to additional recreational facilities, municipal offices and town centres. Is municipal public Wi-Fi a sound investment for your community? This paper presents a framework for a business case analysis for municipalities considering deployment or expansion of Wi-Fi services. This includes benefits of public Wi-Fi and cost considerations. The issues of security and liability are also discussed. Municipal public Wi-Fi is increasingly seen as an important public service to residents, businesses and visitors to the region. 2 Definitions Wi-Fi - wireless networking technology that provides wireless high-speed internet and network connectivity. Wi-Fi Hotspot - a type of Local Access Network, meaning a network where multiple devices are connected to the internet over a single backhaul connections within a small area. Wi-Fi Zone - covers a larger area, typically a downtown area. It provides internet access to any device in the area of coverage. This can support tourists passing through town or residents. 1 Including government and private sector in-kind contributions Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 2
3 Wi-Fi Trends The most significant trends in public Wi-Fi are the growing demand for connectivity ‘everywhere, all the time,’ the growth in carrier class Wi-Fi services, and the huge proliferation of venues where Wi-Fi is offered. There is an emergence of a growing number of Smart Cities that use information and communications technology (ICT) to manage their operations and assets, including IT functions, transportation systems, power plants, law enforcement, community services, schools and libraries. The internet of things (IoT) is an important and growing part of this initiative. These cities use Wi-Fi for operations and for public access to the internet. The more people are connected, the more important connectivity becomes to them. They access more and more information over the internet and become dissatisfied when disconnected. In response to the increased demand for connectivity, many municipalities are providing public Wi-Fi. 3.1 Mobile Connectivity As more people carry mobile devices, especially smartphones, but also tablets and laptops, there will be more demand for data on the go. This will have an impact on the demand for Wi-Fi service. We have passed the Mobile Tipping Point. Globally, more people now use mobile devices than desktop devices, as illustrated in Figure 1. People want to be connected everywhere they go. Number of Global Users (Millions) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 Desktop 0 Mobile 2007 2008 2009 2010 2011 2012 2013 2014 2015 Figure 1: Mobile vs. Desktop connectivity 2 omscore, Mobile Marketing Statistics Compilation, 2016 http://www.smartinsights.com/mobile-marketing/mobile-marketing- C analytics/mobile-marketing-statistics/ Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 3
Adults (over the age of 18) spend 51% of online time, on mobile devices.3 A Catalyst study showed that in 2015, the Canadian smartphone penetration rate grew to 68% from 55% in 2014, a year over year growth rate of 25%.4 See figure 2. 2014 55% 2015 68% 10 20 30 40 50 60 70 80 90 100 © Catalyst 2015 Figure 2: Canadian Smartphone Penetration Rates, 2014-15 The same study revealed, that after short battery life and small screen size, data limits are the third greatest frustration with smartphones. This frustration with data limits motivates smartphone users to use free public Wi-Fi, where possible. 3.2 Carrier Class Wi-Fi Globally, there is very strong growth in carrier-class Wi-Fi, (where internet or mobile carriers offer Wi-Fi service) evidenced in the rise of new sites deployed – a steady annual increase from 5.2 million in 2012 to a projected 10.5 million in 2018, a compound annual growth rate of 13%.5 The availability and quality of public Wi-Fi are increasing rapidly. In 2015, mobile offload exceeded cellular traffic for the first time. Fifty-one percent of total mobile (cellular) data traffic (smartphone and tablet) was offloaded onto the fixed network through Wi-Fi or femtocell6 in 2015.7 Carriers have been integrating distinct Wi-Fi networks more fully into their strategies and their networks to improve customer experience and offload traffic from their networks, resulting in customer retention and reduced cost.8 In Ontario, this strategy is seen with Bell Mobility, as they offer free Wi-Fi in most McDonalds, Tim Hortons and Chapters Indigo locations. 3 leiner Perkins Caulfield Byers (KPCB), 2015 Internet Trends Report http://www.smartinsights.com/Internet-marketing-statistics/ K insights-from-kpcb-us-and-global-Internet-trends-2015-report/ 4 Catalyst, The Canadian Mobile Market in 2015, http://catalyst.ca/2015-canadian-smartphone-market/ 5 ireless Broadband Alliance Industry Report 2013, Global Trends in Public Wi-Fi, p25, http://www.wballiance.com/wba/wp-content/ W uploads/downloads/2013/11/WBA-Industry-Report-2013.pdf 6 A femtocell is a wireless access point that improves cellular reception inside a home or office building. (TechTarget) 7 isco Visual Networking Index: Global Mobile Data Traffic Forecast Update, 2015–2020 White Paper http://www.cisco.com/c/en/us/ C solutions/collateral/service-provider/visual-networking-index-vni/mobile-white-paper-c11-520862.html 8 Wireless Broadband Alliance Industry Report 2013, Global Trends in Public Wi-Fi, Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 4
Cogeco Wi-Fi Hotspots reflect an effort to improve the reach of their network and keep customers connected even when they leave their home or office. Cogeco internet subscribers get free access to Cogeco Wi-Fi Hotspots. After initial log-in, a device connects automatically to a hotspot within range. There are over 90 hotspots in the Kingston area, three in Gananoque, five in Belleville and eight in Peterborough and one each in Smiths Fall and Kemptville,.9 Shaw has rolled out a Wi-Fi network in Western Canada with its Shaw GoWi-Fi service. With the Shaw network, non-Shaw subscribers can access the Wi-Fi network for a fee. Sask Tel has deployed SaskTel Select. The initial driver for the rising investment in public Wi-Fi is the explosion of data traffic, especially that created by the growth of streamed multimedia content and web services. Increasingly people want to be connected all the time, wherever they are. The availability of smartphones and tablets, that support not only the 2.4GHz band but also the wider 5GHz (using 802.11n and 802.11ac), offer big improvements in end-user data rates as well as better network efficiency and lower costs.10 The other enabler for seamless integration of Public Wi-Fi into carrier network and business models is the network operator initiatives on seamless handoff and roaming. Next-generation Wi-Fi hotspots (NGH) enables bypassing the sign-in process with that step being done “behind the scenes”. Carrier Class Wi-Fi is provided by telcos and ILECs, primarily in metropolitan areas, but also in smaller communities, as with Cogeco and Bell Mobility’s Ontario deployments. 3.3 Proliferation of Wi-Fi Venues The venues where Wi-Fi is available have been expanding and changing in response to the demand for connectivity on the go. There is an increase in the prevalence of downtown Wi-Fi Zones, Wi-Fi hotspots in retail outlets and places where people gather, Community Wi-Fi and Stadium Wi-Fi. • Wi-Fi in Downtown Wi-Fi Zones - Users can stay connected within an extended area. This can be delivered by carriers or over municipal Wi-Fi networks. • Wi-Fi in nearly all retail outlets - Initially, public Wi-Fi was found in places like libraries and coffee shops, where users would typically sit for a period of time with a laptop or tablet, but the growing use of Wi-Fi on smartphones is creating demand for instant access everywhere – the supermarket to check on a recipe online or at a sporting venue, to post a selfie, for instance. • Community Wi-Fi - ‘Community Wi-Fi’ services or homespots are proliferating rapidly. This refers to private internet subscribers who share access to their internet connection. Fon is an example of this type of network. The Fon network is made up of shared residential hotspots, that now include more than 14 million (Oct. 2015) crowd-sourced hotspots in over 200 countries. Customers receive a special router that creates two wireless networks separated by a firewall – one network is for private use and the other for Fon users. Fon is primarily in residential areas but it is planning to expand to include businesses. There is a heavy concentration of Fon hotspots in Western Europe, Japan, South Korea and Australia. 9 www.cogeco.ca 10 Wireless Broadband Alliance Industry Report 2003 11 http://www.computerweekly.com/feature/Next-generation-hotspots-The-future-of-Wi-Fi Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 5
The presence of Fon hotspots in North America is growing, but to date, it does not appear that Fon is in Eastern Ontario. • Stadium Wi-Fi – The trend is toward Wi-Fi in huge venues like major sporting venues, where large numbers of bandwidth-hungry users, create profitable, if temporary, business cases revolving around sports results, information and photo sharing. In large part, this is due to the inability of carrier networks to manage the temporary huge volumes of data on their mobile networks. It is more financially and technically feasible for them to use Wi-Fi to offload the cellular network for these events. In rural settings, this might translate to the International Ploughing match, where a Wi-Fi network can be set up by a carrier temporarily, then dismantled after the event. Municipal sporting venues that attract crowds on a regular or periodic basis are better served by municipal or carrier Wi-Fi networks that remain in place. 3.4 Municipal Wi-Fi Networks There are many municipalities, in Canada and around the world, that own and operate Wi-Fi Zones to serve their downtown areas and Wi-Fi hotspots to serve more limited areas such as libraries, recreational facilities and other municipal facilities. These systems operate increasingly on municipally owned fibre networks, but also on public networks where the municipality pays for service. Municipal Wi-Fi system can support a variety of applications for municipal operations including fleet services, water management, smart lighting, traffic management, parking meters and security video management that help make cities safer and greener. This is the Smart City model. The same infrastructure can support free public Wi-Fi hotspots or zones.12 Fredericton, New Brunswick’s Fred-eZone, Stratford, Ontario’s Stratford_Free and Olds, Alberta’s O-NET are notably successful Wi-Fi networks hosted on municipally owned fibre networks. Because these communities own their fibre backhaul facilities there is no incremental backhaul cost to their public Wi-Fi services. In other communities, municipal Wi-Fi Zones are hosted on public networks. The Vermont Digital Economy Project launched 26 Wi-Fi zones on public networks in towns throughout the state. The Vermont Digital Economy Project13 supported deployment of free public Wi-Fi in 25 communities to help business operators reach new customers and markets. In addition to deploying pubic Wi-Fi, the project also supported 25 new municipal websites, provided e-business advice to over 120 non-profits and 260 small businesses and placed 24 Internet Interns in libraries to help teach digital literacy. Through this project they have strengthened the social and business fabric of their communities. This success took more than public Wi-Fi. The supporting projects leveraged the Wi-Fi service for greater community impact. In Eastern Ontario, the EORN high speed broadband network is an asset that can be leveraged to support municipal Wi-Fi services. 12 Wireless Broadband Alliance, http://www.wballiance.com/key-activites/connected-city-program/ 13 Vermont Council on Rural Development, Vermont Digital Economy Project, http://vtrural.org/programs/digital-economy Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 6
On a grander scale, New York City has just launched its municipal Wi-Fi project LinkNYC to cover the city with very high-speed, free, public Wi-Fi. Each Link or kiosk, is equipped with gigabit speed encrypted Wi-Fi connection, USB charging stations and free calling. Appendix A presents examples of municipal Wi-Fi deployments that may serve as models, case studies or inspiration for Eastern Ontario communities. New York City’s LinkNYC is an example of what is possible on a grand scale, while the deployments in Fredericton, Stratford, Olds, Alberta and Vermont are in communities not all that different from those in Eastern Ontario. 3.5 Venue Exclusivity Exclusivity agreements to install and operate public Wi-Fi services for a particular venue, such as a mall, a sports facility, or even through exclusive access to municipal ‘street furniture’ such as lampposts, are adopted to ensure that interference from other Wi-Fi access points is virtually eliminated.14 Venue exclusivity can also secure a revenue stream as seen in the City of Ottawa Wi-Fi deployment example. 3.6 New Spectrum Options The capacity of Wi-Fi is growing with the adoption of new frequencies and standards. The impact of this trend is felt most in the carrier space. The highest profile new band for Wi-Fi is 60GHz, where the 802.11ad standard lives. The 802.11ac standard also supports very high bandwidth. Another important option is to run Wi-Fi in TV white spaces spectrum. Canadian regulatory changes allow TV white space spectrum to be used to deliver improved, Wi-Fi-like services in rural regions without interfering with existing TV broadcasts.15 4 Public Wi-Fi Networks in Communities Served by EORN Public Wi-Fi across Eastern Ontario was researched by surveying the 13 upper-tier municipalities, interviewing municipal IT Directors and Economic Development Directors, IT Directors for towns with Wi-Fi Zones, ISPs and by searching the web. The survey response rate was 100%. Survey respondents were asked about their opinions on the value of municipal public Wi-Fi. Almost all respondents were IT Managers or network administrators. This puts a particular bias on results. These people see how much Wi-Fi networks are used if they are already deployed by the municipality. They understand potential applications, and have an appreciation for the cost and time involved in deploying and managing Wi-Fi networks. Ninety-two percent of respondents felt that municipal Wi-Fi is a valuable community asset or provides moderate community value. No respondents believe that pubic Wi-Fi has no community value, though 23% thought that it is not the responsibility of municipal government. Results of this question are presented in Figure 3. 14 http://www.wballiance.com/wba/wp-content/uploads/downloads/2013/11/WBA-Industry-Report-2013.pdf 15 http://news.gc.ca/web/article-en.do?nid=928659 Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 7
Valuable Community Asset 8 61.5% Moderate Community Value 4 30.8% No Community Value 0 0% Not the Responsibility of Municipal Government 3 23.1% Too Expensive for my Municipality 2 15.4% 1 2 3 4 5 6 7 8 Figure 3: Opinions of Municipal Public Wi-Fi Eastern Ontario is served by hundreds of Wi-Fi hotspots, provided by upper-tier and lower-tier municipalities, towns, internet service providers and other private businesses. All pubic Wi-Fi hotspots identified through this research are free. For this reason, from here on the term public Wi-Fi will be used and will imply that service is free. The most common locations for public Wi-Fi in Eastern Ontario are public libraries and coffee shops (private companies). This is consistent with global trends that see public Wi-Fi deployed in these locations first. Public Wi-Fi is provided by upper tier and lower-tier municipal governments, towns and cities. Survey results indicate that twelve of the thirteen municipalities surveyed provide public Wi-Fi, the most common locations being libraries and municipal offices, followed by recreation and community centres. These results are presented in Figure 4. Recall that this data is the result of a survey of upper-tier municipality’s IT directors. They may not be aware of all Wi-Fi services in lower-tier municipal facilities. There may be additional facilities served by public Wi-Fi. Town Centre 1 8.3% Indoor Recreation Facility 7 58.3% Outdoor Recreation Facility 4 33.3% Community Centres 4 33.3% Libraries 11 90.7% Municipal Offices 9 75.0% Long Term Care Facility 1 8.3% 1 2 3 4 5 6 7 8 9 10 11 Figure 4: Location of Municipal Public Wi-Fi Sites. Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 8
4.1 Public Libraries Over 125 public libraries in Eastern Ontario offer their clients public Wi-Fi, usually in addition to computers with Ethernet connections. These locations are heavily used. In Eastern Ontario, libraries are the responsibility of various levels of government: upper- tier, lower-tier or individual towns. Only a few libraries do not offer public Wi-Fi service. Wi-Fi has contributed to re- invigorating many rural libraries. People come to check their mail, surf the web, do work or homework. In rural areas of Haliburton, for example, the libraries are crowded with people using Wi-Fi. Many seasonal residents and visitors come to the library to log-on. Even when the libraries are closed, there are often people outside, using the Wi-Fi connection. In Perth too, the library has changed since public Wi-Fi has been provided. It’s much busier and much more vibrant. This trend is seen throughout Eastern Ontario. 4.2 Municipal Offices Seventy-five percent of respondents have public Wi-Fi in their upper-tier municipal offices. Most have access for both employees and the public. Often this service is provided in council chambers and meeting rooms as well as common areas. If the municipal office is in a central location, people may stop by to use the internet. If it is more remote, the service is used mainly by people visiting the office for service or meetings. In the older stone municipal buildings, Wi-Fi signal does not extend beyond the room in which the access point is located. The incidence of Wi-Fi service in lower-tier municipal offices is lower because they are located in smaller towns and are less likely to have access to adequate backhaul facilities. 4.3 Recreation Facilities Many recreational facilities, including indoor recreation centres, arenas, community centres and outdoor facilities like parks, baseball fields and soccer pitches have municipal public Wi-Fi. Service is expected by many of the clients of these facilities. If they are used in sporting tournaments, results or scores are communicated. Sometimes video or live data from the game is posted, but this requires significant backhaul capacity. If the facility is rented out, the venue has more appeal and value if there is public Wi-Fi. The City of Belleville, Ontario hosted the U19 Women’s World Floorball Championships at the Quinte Sports and Wellness Centre in May, 2016. More than 400 athletes from 16 countries attended this tournament. The economic spinoff from the event is estimated to be in excess of $1.2 million. This type of tournament requires a world-class facility, including excellent public Wi-Fi to support officials, camera crews, athletes and spectators. The United Counties of Prescott and Russell understand Wi-Fi as a service their residents and businesses expect. They offer public Wi-Fi at most municipal facilities, as described in the following profile. Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 9
The United Counties of Prescott and Russell Wi-Fi Network In The United Counties of Prescott and Russell, the upper-tier municipality provides public Wi-Fi in the town of Hawkesbury. Almost all upper-tier facilities and many lower-tier facilities in Prescott and Russell are served with Wi-Fi, in most cases, for both employees and the public. If new facilities are built, Wi-Fi service is normally part of the plan and is installed as part of the communications system at the time of construction. There is pubic Wi-Fi in municipal offices (council chambers, lobbies, meeting rooms), all libraries, arenas, the water plant, emergency services facilities and the public works garage. The bandwidth provided is sufficient to browse the web, send texts, download e-mail and photos. Although the speed offered is limited and not designed to offer large streaming capabilities, users are still able to access some streaming content. The network is password protected and the password is updated periodically. Users get the password at the office of the facility they are in. Installation and maintenance are done by the United Counties IT team. A full re-design of the IT infrastructure was completed a few years ago. This was a major undertaking that has resulted in an infrastructure that is relatively easy to manage. The infrastructure is based on a fibre connection at the United Counties Main office and fibre connections in the remote sites. All the traffic is routed to the main connection at the United Counties main office where it is inspected by the corporate firewall. The entire Wi-Fi infrastructure is managed from a single AP controller, with a deployment that is standard across all locations. Installation of a new hotspot can be done quite simply, by replicating an existing one. County staff and residents are pleased with this service. The United Counties IT team is currently looking to upgrade the fiber connections in remote sites in order to be able to offer better performance for the various Wi-Fi connections. 4.4 Downtown Wi-Fi Zones Public Wi-Fi in downtown zones is a response to the trend toward connectivity everywhere. Some Eastern Ontario towns and cities provide public Wi-Fi in their town centres, some are considering it and some don’t feel it’s their responsibility. This is normally the responsibility of the town itself and not the upper-tier municipalities. The towns of Perth and Greater Napanee provide public downtown Wi-Fi Zones as described in the following profiles. Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 10
Perth Ontario Wi-Fi Zone In Lanark County, there is a Wi-Fi Zone serving all of downtown Perth and much of Stewart Park. When there are concerts or festivals in the park, usage is particularly heavy. At other times, visitors bring picnics to the park and access Wi-Fi. Cottagers come into town for the Wi-Fi. Seasonal residents and visitors to the area use the Wi-Fi in the park or downtown and spend more time in town than they might otherwise. This brings economic benefit to the town, as visitors shop and eat while they are there. The Wi-Fi Zone was installed by WTC Communications of Westport Ontario. The Town of Greater Napanee Wi-Fi Network The Town of Greater Napanee has deployed a free Wi-Fi network as a service to residents and tourists and a way of making the town more progressive. They want to appeal to a modern connected clientele. Napanee has recognized that people want to be online all the time. A splash page (the page users see when they sign on) promotes town events or directs tourist to a tourist information page and a live kiosk. In summer 2016, Napanee will have a summer student develop a walking tour of the town that is accessed through Wi-Fi hotspots. Wi-Fi service is available throughout the downtown area, on both sides of the river. It is very popular during the many public events and festivals that take place downtown. The Strathcona Paper Centre, a busy recreation complex is connected and heavily used. Boaters who dock at Conservation Park are regular Wi-Fi users. One of the first things boaters do once docked is take out their phones and tablets. Service is available at the skate park, Springside Park, the boardwalk, Conservation Park and docks, the boat launch. Surveillance cameras are present in certain areas, with live stream CCTV transmitted over the Wi-Fi network. The Napanee network was installed in 2014 by Storm Internet Services. The largest cost element was hardware, including a 21-meter tower, two 6-meter towers, routers and cabling. Napanee monitors their own network, and has a service contract with Storm for repairs and maintenance. The network includes more than 20 Access Points. Arnprior, Belleville and Peterborough have plans to deploy public Wi-Fi zones in the near future. Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 11
4.5 Municipal Plans for New or Expanded Wi-Fi As more communities buy fibre services, the capacity to deploy enhanced services including Wi-Fi is greatly increased. A municipal fibre connection can be shared across all facilities. This allows capacity for Wi-Fi for operations, administration and public use. Some municipalities, including Prescott and Russell, Haliburton and the City of Belleville provide public Wi-Fi at almost all their facilities. Several communities that are planning to adopt fibre services in the near future, also have plans to expand the offering of public Wi-Fi in administration buildings, parks, recreation facilities, town centres, campgrounds and marinas. Figure 5 illustrates the survey response to the question about plans to deploy new or additional municipal public Wi-Fi sites. Town Centre 0 0% Indoor Recreation Facility 1 11.1% Outdoor Recreation Facility 4 44.4% Community Centres 1 11.1% Libraries 0 0% Municipal Offices 4 44.4% Long Term Care Facility 1 11.1% 0.5 1 1.5 2 2.5 3 3.5 4 Figure 5: Municipal Wi-Fi Deployment Plans As fibre is extended to additional communities, the capacity to provide public Wi-Fi is greatly enhanced. Many of the plans for expanded Wi-Fi service follow the deployment of fibre. In Stormont, Dundas and Glengarry, for example, the availability of high-speed DSL is enabling public Wi-Fi at a municipal marina and a campground. In Frontenac County, fibre to a municipal long-term care facility allows capacity for Wi-Fi for residents and guests. The County of Haliburton is planning to upgrade its municipal Wi-Fi network in 2016. A new fibre connection will provide 100 Mbps service: half for operations and half for public Wi-Fi use. The County will introduce a central management system that will allow it to collect data on traffic and usage at all sites and manage traffic load. It is expected that the new system will require about four hours per month of network management time. This is more work than the current, un- managed system takes, but will provide much better service to the County’s clients. A Haliburton arena has been approached about live streaming hockey games. Its 10/1 Mbps connection is not sufficient for this. However, the planned new fiber service will allow plenty of capacity for live streaming games. Enhanced Wi-Fi service at a large park, where concerts and festivals are held, is expected to be a great support for community vibrancy and economic development. This is really only part of the picture as other tiers of municipal government may also have plans. Wi-Fi Zones in town centres are typically owned and operated by the town or the Business Improvement Association, as in Peterborough. Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 12
Peterborough Wi-Fi Zone The Peterborough BIA will launch a Wi-Fi Zone covering about half of the downtown core in May 2016. The network will serve businesses, outdoor areas including patios and park benches and apartments in the downtown core. The network will be wide open. Sign-on will require agreement to the terms of service but no password. Bandwidth provided will be sufficient to stream high quality video including Netflix. At very busy times, such as during festivals or events, data per user will be reduced. The Peterborough BIA will collect data through the network for use by its business community. It will collect real-time data on how many devices (proxy for people) enter the service area, how long they stay, where they spend time and when they leave. Both raw and analyzed data will be available to business owners. This zone analytics data will be of value to business operators, who will receive access to the data for free. This type of data could also be sold, but the Peterborough BIA has decided to give it to business owners as they already contribute to the cost of the network through BIA fees. This data does not include any personal information. A partnership has been formed between the BIA and Cogeco, whereby Cogeco will contribute data backhaul for the network. Peterborough Utilities will provide cherry pickers for equipment installation. Equipment and professional services have been sourced from Softchoice. 4.6 Public Wi-Fi Provided by Private Sector Companies The biggest private providers of public Wi-Fi in Eastern Ontario are Bell Mobility and Cogeco. Hotspots are also provided by many coffee shops, restaurants, inns, hotels, marinas and smaller ISPs. Cogeco Free Wi-Fi is available mostly in the Kingston area, where there are 90 hotspots. There are also hotspots in Peterborough, Belleville, Kemptville and Smiths Falls. This service is a variant of the public free Wi-Fi model, as service is available only to Cogeco internet subscribers. It is nominally free, as the service is paid for as part of subscribers’ internet service fee. The Cogeco hotspots are located in restaurants, cafes, stores, inns, medical clinics and other customer facing outlets. Bell Mobility provides unlimited access to free public Wi-Fi in participating Tim Horton’s, McDonald’s and Chapters Indigo locations. There are over 135 participating locations in EORN-served areas of Eastern Ontario. There are more of these locations in high density areas, but they are also present in small towns. Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 13
Many business owners, including coffee shops, restaurants, retailers, inns, hotels clinic and others offer public Wi-Fi to their customers. Normally, businesses expect and appreciate it when Wi-Fi users buy something. Most retailers who offer public Wi-Fi service find that it keeps customers in their facilities longer and see a correlation between having public Wi-Fi and increased sales. If the incremental cost is $10 to $50 per month for incremental backhaul capability, it is easy to see how increased revenue could rapidly exceed that. In Central Frontenac, North Frontenac Telephone Company is providing public Wi-Fi service to visitors at Sharbot Lake beach. The original plan was to fund the service by selling advertising on splash page (the screen you see to log on to the Wi-Fi). However the population was not large enough for this to be successful. North Frontenac Telephone Company decided to maintain the site at their expense, as a community service. Wi-Fi is enjoyed by picnickers in the summer and snowmobilers, ice fishers and cross county skiers in the winter. 5 The Business Case for Free Public Wi-Fi Developing a business case for public Wi-Fi forms an easy-to-follow framework to support a decision on municipal deployment. As municipal public Wi-Fi is typically provided at no cost to the user, the benefits are in the form of value to the municipality and its residents and businesses. That value is subjective, though real. It is difficult to quantify the benefits of Wi-Fi, just as it is difficult to quantify the benefits of the internet. Nonetheless, benefits can be identified in qualitative terms. In some cases, the Wi-Fi network can generate revenue, but this is not the norm. Deployment and operating costs for Wi-Fi infrastructure depend on the area to be served, the level of service to be provided and many other variables. Cost estimates can be developed by municipal IT staff, with quotes from service providers and equipment vendors. This document will provide a framework for deriving costs and benefits. Once a network cost is identified, and the benefits of the service are captured, it is possible to make an informed decision as to whether the benefits are worth that investment. Available budget will help determine the service offering. If quantified benefits and costs are required to compare a Wi-Fi project to other potential investments (Net Present Value analysis), the qualitative analysis is a good starting point for that analysis. 5.1 Leveraging the EORN Investment in Broadband The EORN has made a $260 million investment (including government and private sector in- kind contributions) in fibre and access networks supporting broadband services across most of Eastern Ontario, and high speed fibre services to more than 50 business parks and commercial areas in the region. This investment in high quality, reliable broadband service supports economic development by enticing businesses to locate in the region. It also provides ample capacity for municipalities to support public Wi-Fi. Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 14
In addition to the infrastructure investment, EORN/EOWC has negotiated a long-term Master Business Internet Agreements (MBIA) with Bell Canada for the provision of high- speed internet fibre services for all 103 municipalities and First Nation communities across Eastern Ontario and Nexicom Inc. for the Peterborough area. The favourable pricing in this agreement contributes to a positive business case for municipal public Wi-Fi. Highlights of the Bell agreement include: • Connectivity at 100 Mbps (symmetrical) with ability to increase capacity. • MBIA term of 10 years (2016-2026). • MBIA Pricing is available at any point in the 10-year agreement. • Those in present agreements with Bell or Nexicom may upgrade to the new agreement with no penalty. • Capital cost is the responsibility of the client and can be amortized into monthly rates or paid up front. • Pricing can be reviewed throughout the term of the contract to ensure market competitiveness and speed enhancements. This agreement offers significantly lower pricing that was previously available. For example, some counties were paying $1500 per month for 20 Mbps service. The MBIA pricing offers a discount of 94% per Mbps on that pricing, allowing access to much greater capacity. Service offered under the MBIA is on a direct connection, therefore not subject to general network congestion. This level of service can provide affordable backhaul capacity for public Wi-Fi service. 5.2 The Benefits of Municipal Public Wi-Fi Before deploying or expanding municipal Wi-Fi, a community should assess the value the service can bring. Typical benefits to municipal public Wi-Fi are presented here. Each municipality, knowing their particular environments and populations can estimate the extent to which the value described here will apply to them. Wi-Fi provided by private enterprise can offer many of the same benefits to a municipality. Encouraging businesses to offer free public Wi-Fi can be a good way to get some of the desired benefits. The areas where public Wi-Fi tends to have the most impact are: economic development, community branding, support for municipal programs and services, and internet service to low income residents and residents without broadband access at home. Public Wi-Fi can enhance the vibrancy and attractiveness of communities, retaining and attracting young people and business and tourists. For the purpose of this analysis, the benefits of public Wi-Fi service are presented in qualitative terms. The following are elements a municipality should consider when weighing the value of Wi-Fi service in their community against the costs of installing and maintain Wi-Fi infrastructure. Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 15
5.3 Economic Development Broadband and fibre services are attracting more businesses to Eastern Ontario. Public Wi-Fi provides an incremental boost to economic development, by helping existing businesses increase sales and through social media promotion of the region. Both private and municipal Wi-Fi service contribute to economic development. The most popular on-the-go smartphone activities of consumers in Canada as of March 2014 were getting directions (81%) and finding new restaurants (60%)16 (See Figure 6). These are activities that support commerce in the community. Making these activities cheaper and easier makes good business sense for a municipality. 100% 81% 80% 60% 60% 40% 40% 40% 36% 20% Get Find a new Check the Use Check score directions restaurant to try weather Twitter of sports game Statista, Canada: Smartphone Users Activities on the go 2014, Figure 6:http://www.statista.com/statistics/442985/smartphone-mobile-activities-on-the-go-canada Most Popular On the Go Smart Phone Activities of Consumers in Canada in March 2014 The trend toward mobile communications, globally and in Canada, was presented in Section 3. Providing Wi-Fi in public places, whether downtown zones, recreational facilities or private businesses, provides these connected people a service they want, encouraging them to spend time and money in the community. Social media users love to share photos of themselves and their friends. People sharing photos of themselves having a wonderful time is great promotion for your town. Many businesses have their own Wi-Fi service. Most cafes and restaurants offer public Wi-Fi to keep people on their premises longer, buying more. Increasingly, customers feel dissatisfied if Wi-Fi is not available. As noted under Wi-Fi trends, many shops now have Wi-Fi connections. Shoppers can do product research on the spot or photograph it and send the photo to their friends for approval, often closing the sale. The additional sales enabled by Wi-Fi can help businesses become more profitable. Public Wi-Fi increases foot traffic. People walking on the sidewalk are more likely to stop into a store than those driving by. As indicated in the City of Belleville Business Retention and Expansion Report, small town foot traffic is desirable, hopefully leading to increased sales.17 16 S tatista, Canada: Smartphone Users Activities on the go 2014, http://www.statista.com/statistics/442985/smartphone- mobile-activities-on-the-go-canada/ 17 owntown Belleville Business Retention and Expansion Project, 2014, p.18 http://belleville.ca/images/uploads/Final_ D Report_-_BR%2BE.PDF Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 16
Business people will regularly meet in public places. They often need Wi-Fi and buy coffee and food. Travelers passing by a town or village may decide to stop to for a meal or to check their mail. Once they stop, they can use their mobile service, if they have it, or use Wi-Fi on their smart phone. People prefer free Wi-Fi over cell service if there is no cellular signal, if they have no mobile data plan, or if they are trying to stay within the usage allowance of their mobile data plan. Cellular service, though improving rapidly, is still unavailable in 20% to 30% of populated areas of Eastern Ontario18. Cellular network capacity can be limited, causing slow, frustrating service. Public Wi-Fi provides an alternative. Splash screens (the screen users see when they log onto Wi-Fi), can suggest things to do in town. They may suggest a local market or festival, a municipal service or activity or they can direct users to a business, perhaps for an advertising fee. Splash pages can also be used to conduct short focused surveys on relevant community issues. Answering a short survey can be included as part of the acceptance of the terms and conditions for using and signing into the free Wi-Fi. Public Wi-Fi adds value to facility rental, attracting sporting events, fairs, festivals and meetings. Often, event organizers simply cannot hold events in venues that do not have public Wi-Fi. They need it for operations and their customers demand it. Presentations often include web links. Many sporting events require Wi-Fi to post results and to satisfy the fans’ need for constant access. For example, Wi-Fi in arenas will attract more and bigger tournaments. The City of Ottawa confirmed that when they rent conference rooms, they charge an additional fee to activate Wi-Fi. The meeting room Wi-Fi service draws more meetings to their facilities and is profitable. Retaining young residents in rural areas is important to the continuity and vitality of communities. Connectivity is extremely important to this demographic. Public Wi-Fi makes connectivity cheaper and more available to them and signals that the community is right for them. Seasonal residents are also very important to many rural communities. They come into town as cottagers or visitors and frequent shops, restaurants, marinas and other facilities. Wi-Fi zones and Wi-Fi hotspots will help keep them in town or at public facilities. Instead of picking up their boat and leaving a marina, they may stay for coffee or lunch, if they can be connected. More tourists come, stay longer, spend more money and make the area feel more active, livable and vibrant. They will choose cottages, campgrounds, inns, B&Bs and hotels that have Wi-Fi. The idea of “getting away from it all” has much more limited appeal than it once did. 5.4 Community Branding and Marketing The availability of public Wi-Fi is a feature of technically and socially progressive towns and cities. It can bring an atmosphere of vibrancy and success to a community. Recognized brands including Smart City and Intelligent Community can be pursued to secure the capability and image they represent. The smart city is defined by Wikipedia as an urban development vision to integrate information and communication technology (ICT) solutions in a secure fashion to manage a city’s assets. The goal of building a smart city is to improve quality of life by using technology to improve the efficiency of services and meet residents’ needs. Public Wi-Fi can also play a role. 18 EORN data Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 17
Smart City An Intelligent Community is a designation conferred by the Intelligent Community Forum to applicants who understand the challenges of the Broadband Economy and have taken conscious steps to create an economy capable of prospering in it.19 Kingston, Burlington, Ottawa, Stratford, Sudbury, Toronto, Waterloo and Windsor-Essex are all Intelligent Communities in Ontario. Without attaining Intelligent Community status, a municipality can brand itself as a progressive community that embraces information and communications technology (ICT) for the benefit of its residents, visitors and business people. Making public Wi-Fi available is one of many indications that the municipality understands and believes in the community value of connectivity. Promoting this service and the values that underlie it can enhance the reputation of the municipality. The municipality’s brand must then be promoted to create awareness. Signage is an important step. It should indicate all public Wi-Fi sites. The municipality’s web site should also inform the public of the availability of public Wi-Fi. A Wi-Fi splash screen can support branding by requiring users to see promotional material or community service messaging.20 Social Wi-Fi can also be used to promote the municipal brand. Social Wi-Fi requires users to like a Facebook page or tweet about the venue hosting the hotspot (the municipality in this case). This serves as the login process for the Wi-Fi network. Once connected, Wi-Fi analytics provide demographic and engagement information about the user, to the site host. Information available includes how long they are online as well as the information in their social networking profile (age, gender, affiliations, interests, etc.) This allows the municipality to share personalized offers, provide mobile payment facilities, generate a marketing list, track consumer behaviour and build its brand.21 5.5 Collaboration with other Municipal Programs and Services In many communities, free public Wi-Fi is seen by residents and the municipality as part of the public service offering. It supports other programs and municipal services. The following examples illustrate how public Wi-Fi supports other municipal services: • Public libraries: Almost all public libraries in Eastern Ontario offer their clients Wi-Fi. The internet is the most popular and in many cases the only way to access current information. Customers can access the internet through library computers, or on their own devices over Wi-Fi. Public Wi-Fi has transformed many libraries from quiet places with limited selections of recently published books to active social and educational hubs. • Municipal administrative and operations facilities: Public Wi-Fi is often provided in municipal buildings for the benefit of the public and business visitors. 19 Intelligent Community Forum, intelligentcommunity.org 20 Wireless Broadband Alliance, Connected City Program, http://www.wballiance.com/key-activites/connected-city-program/ 21 https://econsultancy.com/blog/64277-how-to-use-free-wi-fi-for-social-marketing-and-analytics/ Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 18
• Recreation centres, sporting venues and meeting rooms: Public Wi-Fi enables spectators, people waiting for players, and participants of various activities to access the internet while at the facility. Public Wi-Fi is necessary for hosting many types of events and meetings. The availability of Wi-Fi makes facilities easier to rent and can attract a higher rental price. • Special events: Events such as concerts, fairs, and markets all benefit from public Wi-Fi. Public Wi-Fi can be an integral part of the municipal service offering. Often Wi-Fi is essential for event organizers, and meeting participants who might be using non-mobile devices. 5.6 Service to Low-income and Underserved Residents. “Rural family income levels are 15 per cent lower than levels in metropolitan Ontario.”22 The high cost of access to internet and mobile data can be a hindrance to equality in access to education, employment, health and social connection. There are certainly opportunities to support low- income residents. Municipal public Wi-Fi can provide many of the benefits of internet connectivity to those who do not have connectivity at home and/or have little or no mobile data service. This could be for reasons of: • Affordability of internet service: Rural service can be limited and expensive. • Affordability of mobile data plans: Residents who have cell phone plans may choose small data plans or no data plans, knowing that they can rely on public Wi-Fi in certain places. It is very expensive to supply a family with multiple children with data plans. • Inability to access internet from home: up to 5% of residences in Eastern Ontario still do not have good access to terrestrial-based internet.23 There are other ways that Wi-Fi can be used to support low-income residents. In some cases, devices are required as well as the connection to the internet. • Public Wi-Fi can be installed at social services facilities, food banks, shelters, employment centres or drop-in centres. • Wi-Fi Zones may provide home internet service to residents in low-income apartments. The public Wi-Fi Zone in Greater Napanee serves 250 apartments. The service provides moderate bandwidth service, enough to do email and web-searches, moderate-quality video calling, but not enough to stream high quality video. The Peterborough BIA public Wi-Fi Zone provides service to downtown apartments. This is high bandwidth service, sufficient to meet most internet needs. During high data traffic events, bandwidth is reduced. 22 ec 2015, Focus on Rural Ontario Fact Sheet, http://www.farms.com/news/focus-on-rural-ontario-fact-sheets-show-rural-income- D levels-and-trends-101871.aspx 23 EORN web site, eorn.ca Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 19
Through public Wi-Fi, low income residents can gain access to the benefits of internet connectivity. The most notable of these are: • Social connection: The ability to connect with family and friends via social media, email or video and enjoying entertainment options through internet television/movie services and gaming. Marginalized residents often own a smartphone, but have trouble making monthly payments. • Improved public access to government services and information. • Economic potential: The ability to search for jobs online, to apply online, to operate home based businesses, to telecommute, to do online banking and investing. • Educational: The ability to take online courses, to do coursework at a bricks and mortar institution from home, to submit assignments from home, to do online research, to read online material. • Health care: To access health services (eHealth Ontario, online lab results, online consultations with medical professionals in another community), to use eHealth monitoring services (alarms, glucose monitors, etc.), remote diagnostics, to research health related topics, to find appropriate health services. A side benefit of having access to the internet in public places is reduced isolation. Sometimes, members of rural communities can become isolated. Going to a public place creates opportunity for interaction with other community members. 5.7 Revenue Generating Opportunities Municipal public Wi-Fi is typically provided as a public service but there are some opportunities to generate revenue. Examples include: • Splash screen advertising, other ad-based revenue programs. • Exclusive rights to locations where Wi-Fi hotspots are located can be sold. • Wi-Fi Zoning analytics: Data on user traffic can be sold, used by the municipality, or made available to community members. The type of data available is aggregate real-time data on the number of users by area or by type of device. • With Presence Analytics tools, the network operator can track the unique mobile access control (MAC) addresses of smartphones as they pass through an area. From this it can gather statistics on footpaths, dwell times and time of day traffic volumes at various locations, gaining insight into what areas are drawing traffic. Data is collected whether users log onto the public Wi-Fi service or not, as long as the phones have Wi-Fi turned on. MAC addresses are unique to each device and therefore are traceable to unique owners. Operators must me careful to explain that no individual information is used in their analysis.24 The information provides valuable insights for business operators, municipal planners, economic development organizations and BIA’s. The Peterborough BIA has plans to provide this type of information to their member 24 http://blog.mojonetworks.com/top-reasons-to-use-wi-fi-zoning-analytics/ Municipal Public Wi-Fi – A Sound Investment? EOWC/EORN 20
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